Thursday, October 05, 2006

Actual return on life insurance policies

There has been some requests for life insurers to post their actual return on their life insurance policies.

NTUC Income wishes to make a start. Here are the actual return on our endowment policies maturing in 2006.


Endowment policies maturing in 2006.

Term Taken in Monthly Entry Maturity Yield
premuim age amount

10 yrs 1996 $100 25 $14,800 4.4%
15 yrs 1991 $100 25 $26,600 5.2%
20 yrs 1986 $100 25 $45,800 6.2%

10 yrs 1996 $100 40 $14,600 4.2%
15 yrs 1991 $100 40 $26,100 5.0%
20 yrs 1986 $100 40 $42,200 5.5%




The maturity benefit included the additional bonus distributed on every 5 anniversary.

The actual return on maturity are attractive, varying from 4.2% to 6.2% per annum.

Our maturity values for a 20 year policy is about 15% higher than similar plans
offered by our competitors.

We give a better return to our policyholders, due to lower commission, lower expenses and lower distribution to shareholders.

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